Asian shares climbed on Wednesday as markets awaited signals regarding the extension of the shaky truce between the United States and Iran. According to reports from The Hindu BusinessLine, MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.2 per cent, while Japan's Nikkei surged 1.8 per cent to reach a record level. The rally followed all-time highs on Wall Street driven by AI optimism as the U.S. reopened after a holiday.
Oil prices remained volatile with U.S. crude falling 2.8% to settle at $93.89 a barrel and Brent crude rising 3.5% to $96.67, according to Associated Press. This followed a nearly 4 per cent surge in the prior session. Brent crude traded near $100 per barrel, with the greenback holding gains after Iran said the U.S. had violated a ceasefire. Iran's foreign ministry described U.S. strikes in Iran's southern Hormozgan province as a 'gross violation' of the ceasefire, while the U.S. characterized its attacks as defensive in nature. The ensuing war has closed the Strait of Hormuz and kept oil tankers pent up in the Persian Gulf instead of delivering crude to customers worldwide.
U.S. stock markets rose to records Tuesday as they caught up with climbs for others around the world. The S&P 500 climbed 0.6% to set an all-time high at 7,519.12, while the Nasdaq composite rallied 1.2% to 26,656.18, setting its own record. The Dow Jones Industrial Average dipped 118 points to 50,461.68 from its all-time high. Micron Technology's stock leaped 19.3% to $895.88 after UBS analysts raised their 12-month price target to $1,625 from $535, forecasting continued strength in computer memory demand. United Airlines rose 6% and Norwegian Cruise Line Holdings steamed 4.9% higher on hopes for improved oil flow, while AutoZone dropped 9% after reporting weaker Brazil and Mexico performance.
The dollar index remained little changed at 99.09 after a 0.15 per cent gain in the previous session, according to The Hindu BusinessLine. The euro was up 0.09 per cent at $1.1638, while the yen strengthened 0.05 per cent to 159.19 per dollar. The Reserve Bank of New Zealand is widely expected to hold its key rate at 2.25 per cent, while the main event in Australia on Wednesday is the release of consumer price data for April. At a meeting of central bankers in Tokyo, Bank of Japan Governor Kazuo Ueda noted that supply shocks were looming large.
U.S. Secretary of State Marco Rubio indicated that a deal with Tehran to halt the conflict could 'take a few days', as reported by The Hindu BusinessLine. Iran's Tasnim news agency reported that Tehran was seeking the release of $24 billion of funds frozen overseas. Market analyst Kyle Rodda from Capital.com noted that 'the markets are just waiting for something tangible now when it comes to a deal between the U.S. and Iran', with 'a lot of good news is priced in, leaving room for disappointment if something comprehensive isn't announced'. The price for a barrel of Brent crude, the international standard, rose 3.5% to $96.67, reclaiming only some of its plunge from Monday.
